IFC pledges to support Vietnam’s economic growth

A leading official from the International Finance Corporation (IFC) of
the World Bank Group has affirmed that the IFC has confidence in
Vietnam ’s long-term economic prospects and commits to supporting its
growth during difficult periods.

Karin Finkeiston,
IFC Vice President for Asia Pacific, made the remark at an annual press
conference held in Hanoi on August 15 to announce the outcomes of IFC’s
operations during the 2013 fiscal year (July 2012-June 2013).

“Looking forwards, we will focus our efforts on helping accelerate
necessary structural reforms, particularly in the banking sector, in
order to see Vietnam return to more robust economic growth,” Finkeiston
stressed.

The IFC has invested around 805 million
USD in Vietnam during the fiscal year to help expand lending to small
and medium-sized businesses, generate jobs, and spur growth as the
country’s economy slowed and companies found it difficult to get
financing, IFC Regional Director Simon Andrews reported.

Vietnam’s economy is experiencing its longest spell of slow
growth since the onset of economic reforms in the late 1980s, growing a
mere 5 percent in the second quarter from the same period last year.
Many enterprises have cited high borrowing costs as a key factor behind
closures and bankruptcies.

During the 2013 fiscal year, which
ended on June 30, IFC’s trade finance programme enabled participating
banks to issue 155 guarantees worth 800 million USD, making Vietnam one
of IFC’s top markets in trade finance.

IFC’s total
investments in East Asia Pacific reached a record 3.4 billion USD in 83
projects for the whole period, up around 15 percent on an annual basis.
Vietnam ranked second after China in terms of IFC investment
volume in the region.

Andrews also revealed that his
corporation will help banks improve their management ability, recover
bad debts, and achieve international standards in risk management and
corporate governance.

The moves will help banks run
more efficiently so that the private sector, particularly small and
medium-sized enterprises, is able to get financing at a lower cost,
Andrews added.-VNA